Webinar-guide: In-depth analytics for planogram management

today we are going to talk about the really interesting topic about technolytics in merchandising process so the importance of analytics uh actually we in Lithia company we are really keen on like analytics and we are like fans of analytics in all of our Solutions because we think that most of the routine work it should be done by the Machine by the solution by some software but what's important is to make some intellectual work to analyze all the time to see to compare the efficiency what was before what was after so that's why we enhance all of our Solutions with different bi modules and actually today we are going to talk about the bi module of our self-efficiency solution it was introduced recently uh by by the Lithia team and today we're going to cover the reports in this bi module so I hope that

you will enjoy that you will enjoy the webinar uh during the webinar please feel free to ask questions in the chat I will be glad to answer them either today during the session or we can organize always a separate meeting and discuss it in more details let's start I think that everyone who wanted to join they already did my name is Anna I will be I will be conducting today's webinar I'm head of Business Development and live here and I really enjoy working with the customers with the current customers with potential customers understanding their needs requirements and they have really good experience in that uh so uh regarding us as a leafier leaf is a platform that optimizes and automates different processes in supply chain for the retail business uh we have several Solutions in our portfolio they

can be combined and work uh together and as well as they can work as like separate modules so one of the our Solutions is inventor optimization this is solution that covers the replenishment process at all levels at the level of stores at the level of distribution center by um it automates all the orders at all these levels and sends the orders to the suppliers and on the top of that as I mentioned it also has a very powerful bi module in order to give people the tool to analyze and identify a different bottlenecks on the top of the inventor optimization solution there is a promotion intelligence solution that helps to manage different promotion campaigns to analyze the efficiency to plan them beforehand and to forecast the sales for the upcoming promo promotion campaigns uh there are the one uh solution now Portola is the solution

that a certain performance it's solution that helps to um identify the assortment strategy to manage different categories and clusters with the help of AI machine learning and also to make deep assortment analytics and the solution that we actually that will be closely connected with the topic we are going to discuss today is self-efficiency this is solution that helps to manage share and cycle their whole merchandising process for retailers starting from creation of their floor plan or creation of the planogram on communicating the planogram to the store with the help of the mobile application and controlling the execution of the planogram by the store managers or by the merchandisers so the module we are going to talk about is the model in shelf efficiency solution uh this is a bi module that helps to um like cover different uh like um compare different stores to make the

fear to compare the efficiency to evaluate the efficiency in order to understand if we are doing the right or like the right job in the merchandising uh as a company we are present right now in 16 countries and we implemented more than 160 projects for this time and we hope we have about 100 employees in our team uh uh we at lifffield we work and have been working with the different retail verticals uh starting from the grocery convenience store supermarkets and ending with some specialty retailers like pet stores toy stores DIY stores and so on uh so regarding the solution in a nutshell what it does it helps first of all to have the macro Space Management to plan the floor plan interactive floor plan to place different equipment on the floor plan after that to go to the planogram create the planogram either by drag and drop or

by like making their Automation and automatically create the planogram according to different settings after that publishing and communicating the planogram to the store so that they can they can make the actual layout and send the feedback to back to the central office uh so uh let's start with their uh like the main topic of our discussion today the bi module of the Shelf efficiency solution uh I'm right now inside the solution this is a cloud-based solution and uh today here we see the API module here and we see here different types of reports uh so we will start with the the first report this is like for like analysis uh this is important to report to be able to compare different periods of time uh in order to understand if our some of our actions they brought some uh like good changes to our company they

brought increase in sales they brought increased in uh like profitability and so on so what we do which shows the period type here for which we want to compare uh and we got there like for like analysis sir uh here we can choose uh like the parameter one of the parameters for which to make the analysis for example it can be stored it can be supplier planogram item brand and so on from the other side it can be uh like the numbers uh so uh how to identify how to compare by what numbers so by the sales by The Profit sales business sales per meter and so on uh so what we do next is for example we can see here their uh diagram they like for like analysis for the whole year uh we can either like choose the month is here to to be compared or we can go to go here and come and choose the months as different masses here uh so here we can see that we compare in October and

November and uh we see that there is some increase in sales we see that there is some increase in profitability so we were able to compare the two different periods uh here we can see the more detailed um like more detailed comparison uh by some additional kpis here we see the sales that Deltas in sales in profit in sales and pieces in sales per meter profit per meter and so on I want a wooden count all of them um also we can uh like make the comparison here by the sales per meter for example or by uh the sales per facing so to understand uh if we are moving in the right directions if we are doing the like write changes in the planograms and so on uh if we would like to go into some more details and for those people who like numbers for example uh we can go to their table and here we change the analysis section for

example we change planogram and we will be able to see the numbers like for each planogram and the Delta so there are like difference between sales from the previous period to this period profitability sales and pieces and so on so different parameters we can also like stretch this report for the whole screen and to see to be able to see all the numbers here uh for your convenience uh the numbers here are the numbers here highlighted in the green color it is the positive Dynamics the numbers highlighted in red color it's a negative Dynamics uh so this is the report about and also we can see this report in terms of the uh like numbers not like Deltas but actual numbers for uh like for the sales for the profit sales and pieces and so on uh now let's go further uh let's go to the assortment uh this is the report that helps us

analyze uh how quickly we react as a retailer to the assortment changes because assortment obviously assortment is not stable for the retailer and it changes all the time and it's really important in a short term to make um to make the changes to the planogram so that uh like the store managers the merchandisers they can see these changes and quickly change the layout uh so that's what we see here in this report and there are two different sections um we can either uh either analyze it for the whole group or we can choose some particular group and like click on this group and the report will show just for this group uh so what we see here and there are two different parts so the first part is the part that shows us the share of and placed items in the assortment so it means that some of the items were introduced to the assortment so it's new

items are and but they were not they already in the assortment metrics but they are not placed on the planogram so we should uh like we should do it immediately and here we see the coefficient of how many items are not placed uh on the planogram uh of course it like more makes sense for example to see uh especially the items that were already ordered so we already have them in our stock so the items with balances and to analyze like that just these items to immediately place them on the planogram and this coefficient of course it should be like close to zero because most of the assortments should be ideally placed on the planogram and vice versa we should delete the planogram uh delete their uh like the items that are not uh actual in the assortment metrics that you should go ahead and delete them from the planogram

uh this is the second part of the report here uh here we can also like we can choose uh items without balances so for example we still have them in the planogram there are no balances for these items but like uh still we didn't make any changes and we didn't replace these items uh let's go further in just a second I will mention so the next report here is a report about balances uh let's choose here we see different hints from the system like what we should do to have the analytics uh and it shows us for example that yeah we should select the store so let's go to their store selection we select the store and we can see here different planograms different reports uh in like in for different planograms and for different like shelf numbers uh what this report shows is uh what is the percentage of the stock

balance uh was for each particular shelf for each particular planogram what it means and what it helps to analyze it helps to identify if and to make sure that we are not having the empty shelf so if here at the service level is low like here we can see for example like so it's 46 or here we can even see like uh nine percent it means that we are having the empty shells that most of the time during the period that we choose we can select here different periods of time uh most of the time that we choose uh there was no stock balance for the items that are placed on the shelf and that means that we should either from one side to work with the inventories and to work with the suppliers or from the other side maybe we should choose their items we should replace it with some items that have uh like better service levels so in order not to have the empty shell because like the empty shelf is like a very bad situation for the retailer and

so in this case we can like analyze we can analyze each product category we can analyze each shelf here and to see that of course the availability should tend to like uh from 90 to uh 100 percent uh let's go further and we have here the reports about the face and change recommendation here we should select some of their numbers so we are selecting the type of return rate we are selecting the uh date range here we select here the calculation type and let's select the store and planogram for example in my case I will choose the planogram low alcohol uh so uh what we can see here for example the first part is uh faces with change recommendations uh so it shows us their

their balance between the share in sales and the balance between the share in width so for example if it means that this category what we have here we have here some like some kind of wine and we have here really unbalanced situation when their share in sales is like 90 is almost like 20 and share in which is only like zero thirty percent so it means that it brings us a lot of sales but at the same time we have a very small width so we should consider like changing the facing and increasing the facing and we can see it for each particular category here and here we can see this in in the this diagram this situation and here like the items that will be uh close to uh like uh their uh the middle let's say it means that they are like more or less balanced they have the return rate that is close to one uh but

if we can see like these items it means that they are the most problematic items and these items and these items so for these items thread items we should go immediately and decrease the facings and for these items we should go immediately and increase the facing so it means that those items they bring us like a lot of sales uh but they are not almost not present in the planogram and these items vice versa they are present in like big width and in with a lot of face sense but they almost bring us no sales and here we can see the table that shows us the actual like there are a lot of numbers here we won't cover like all of them but in a nutshell it shows us like uh for which items to increase the faces and on how many faces so here we can see like to increase for example for one three uh eight nine and so on and here we can see that for these items we should go and decrease the phases

uh okay uh this is about the report regarding the like uh how the system um uh helps you to work with the different uh with the efficiency on the planograms uh the next one is also connected with the return rate uh but in this report we can compare the return rate of different categories so for example we are chosen here the type of return rate by sales uh we choose here the analysis section and we choose here the period okay uh the type of returning period for analysis and we can choose here for example the store uh so uh what we can see here that we can see here like by brand and we can compare uh what is uh what part of the brand is presented like in a big number of faces for example and we should maybe

talk with the supplier about decreasing this number of phases or just if we can do it just decrease it by ourselves uh so to fire to identify this like problematic items with the uh very uh big return rates and uh that are not like balanced that are over one or like uh close to zero and we can compare also these categories so in order to understand uh like or for example here we have different like Brands but we can also compare categories in order to understand which category occupies a lot of like shells and we should maybe work and think about decrease of this category on the Shelf uh and on the equipment and vice versa which uh which category brings us like more sales but it's not really presented uh like with the number of weeds with a number of items on the Shelf so that's how we can analyze that uh we

can analyze that here for the different like Brands we have reports here and we can open the uh like table with the numbers in order to see like on uh how many meters for example we should it's better for us to increase the category for how many meters it's better for us to uh to decrease the category uh let's go further to the layout structure uh so this is required that allows us to identify and to see uh how much uh Place uh each like um category subcategory or like we can choose like brand supplier and so on occupies on the Shelf uh we can choose some particular category and analyze that and so on so for example we can hear like mention the data for which to calculate their uh the part of each

subcategory uh we can choose here something for example like fast food and see information just like for this sub category and we can see some more details in terms of the planogram for this categories so for example we can open this table uh we can see here the width so we can see here the average facings share in which facing widths and other different parameters that allows us to understand what is the part on the Shelf of each subcategory to analyze if it's balanced to compare different categories with the Charger and make decision and help the category manager to make decision on their increase of like some items on the shelf or decrease of some items on the Shelf and also uh the last one all right here we can get some recommendations uh from not recommendations we can compare the

efficiency of our action uh on one store where for example uh the pilot store where we made some changes in the planogram uh with some basic store so for how we can do that uh we select here the basic store for example this this one we select here the sofa comparison for example this one so the basic Stories the store where we made some changes for example we chose this store for the pilot when you're like starting the project and you are working for this store in terms of like changing the planograms in terms of working with the planograms analyzing the planograms according to the sales efficiencies or you're working basically working with the store in this system uh the store for comparison it's the store that is very similar to this one but we are we haven't made any changes and so for example we choose here the data period to be able to find the

similar store and to to be able to make sure if we are comparing with the similar store according like to the sales uh so we're chosen here uh several weeks for example we choose the data period before changes for example we understand that uh okay uh we are comparing uh uh two weeks with two weeks and uh the week 41 42 when we didn't make any changes and the week 45 and 46 uh when we actually like made some changes to the planograms uh communicated into the stores and like the store managers they change this so on the layout uh we are choosing here our chips so some product category and we calculate for the uh calculate the result for this like 40 52 items that we chose I will explain these

numbers a little bit later uh right now we are like checking whether which shows their uh like good store for the comparison so we show uh we'll let the system show us the rating of the store that we choose for the comparison so this is uh the store uh uh eight uh eight nine oh zero one uh it is it has like the First Rate and so it means that according to our the rating system this story is like very close to to our store that we are comparing and here we can also like search for a similar store uh and to analyze this information in terms of like different uh uh ratio sales ratio availability ratio and so on uh regarding the system algorithms uh in a nutshell it combines all these criteria with different like parts of each criteria here and makes decision on which store is uh like in one in the

first rating which store is like in the second trading and so on uh so we can either like uh we can show we can search here for the store that has like similar sales for example and so on and to me just to make sure or if we would like to change some other store we can go to this uh to this table and we can see here like different in store so we can compare by different parameters here by sharing sales by sales by the promotional days and so on and you can see that okay uh the pink one for example and the green one they seem to have like so very similar behavior in terms of the sharing sales in like total sales of the retailer but we for example we can see that the red one it has like a much much bigger part in the sales of the company so that's how we can like work and choose the store and here we can check the rating

like how you choose for example it and how the system have chosen has chosen it and compare so what we can see here we can see that uh during two periods of time that before changes and after changes uh we had some um like increase in sales in uh comparison to uh the to the part if we didn't make any changes it will become more clear if we go here for example and we can see here different uh different indexes so for example the basic index we can see that actually two boss or the first store and the second store they dropped in sales uh but it can be for different reasons it can be for example if we are right now we are analyzing chips uh for example it was during previous period it was on football match and a lot of people they bought chips and it add them with the beer and right

now after that the football championship stopped and like uh now we have drop in sales so for both stores they're uh for both stores the sales dropped uh but we see that for the basic store uh we have the drop just for one and two percentage uh percent and for the store that we are comparing with where we didn't make any changes the drop was for a 30 percent uh so it means that if we didn't make any changes in our basic store uh we might have had the same effect as here and it means that uh due to our changes we actually like kind of earned uh the company uh 7 000 and like seven and a half a thousand dollars for example uh so uh this is very uh like um very interesting report that uh allows us to analyze uh on and to see

the effect of uh like how your category managers worked with the planograms and that their efforts there were not like uh they were done like properly and they they can see the effect actually in numbers on the stores that uh like that were compared uh this is uh uh the overview of the bi module for the self-efficiency solution uh as I mentioned in the beginning it's just like their the analytics let's say part not the small part but the analytical part of the system uh the that helps to identify the bottlenecks to evaluate are the efficiency to compare different stores to compare the efficiency before the planogram change after the planogram changes and so on uh and the still the main part of the system it helps to work with the planogram so it's more like the process one

um thank you for your attention uh if there are any questions I will be happy to answer them uh please write them in the chat uh or if you're interested to talk more about the planogram solution how it works uh we will gladly share our experience please feel free to contact uh to contact our sales team through the website through the demo requests and so on uh thank you everyone for the for your participation for being in this webinar after the webinar we will definitely share the recording with all of you it will be sent to your email have a nice day and I hope that this webinar was insightful and interesting for you and will help you to think about how you evaluate efficiency how like how your current merchandising process works and this kind of thing

thank you very much for your attention have a good day